Role of IPR in Software Industry and Their Related Industries – An Overview

Role of IPR in Software Industry and Their Related Industries - An Overview
| Updated: Sep 18, 2021 | Category: Intellectual Property

In the software industry, IPR (Intellectual Property Right) plays an essential role, and the software industry foundation is associated with IPRs by throwing lights on Patents, Copyrights, Trademarks, etc. Each IPR provides legal protection in different ways. Trademarks safeguard the names & symbols which are used to recognise other products in the market. Patent, Copyright, and Trade Secrets have the leading role in protecting technology. Scroll down to check the role of IPR in the software industry and its related industries.

What is IPR?

Before we move forward to the role of IPR in software industry, let’s first understand the meaning of IPR. IPR stands for Intellectual Property Rights, and Intellectual Property includes distinctiveness, creativity, inventions, symbols, etc. Intellectual Property Right is also like other rights of property, and they avoid others from selling using or copying products without the permission of the actual owner. The owner can also sue such unauthorised people who illegally use or sell their products in the market without their knowledge. IPR is not a new idea or concept, but it came to use and developed recently. The requirement of the Intellectual Property Right went in the 19th century, and there are two conventions for Intellectual Property Rights systems all over the world.

  • Berne Convention (Protection of Literary & Artistic Works), 1886 and,
  • Paris Convention (Protection of Industrial Property), 1883.

Ownership & Value of IP to Indian Software Developers

In the past few years, Indian companies created Intellectual Property as a part of a customised software development contract with a distant client. It had been a one-off engagement to fulfil the actual requirements of the customer. However, this had two outcomes for an Indian software supplier. The first one is the Software that is created or developed by the Indian company was the idea of the client for whom it had been created and who bought it. It didn’t pertain to the Indian vendor and, in principle, couldn’t be used again inconsiderately being given to the primary customer. Hence, whether or not valuable to the customer, the software services weren’t of much future business use to the Indian Company. Second, the modified Software was distinctive to the business application for which it was created and thus didn’t have much value in other business applications.

IP Protection in India in the context of Software – IPR in Software Industry

In the past, the protection of IP was little keen for Indian software companies. To some extent, this lack of conspiracy is clarified by the small new knowledge content of Indian software services; there was a lot of property to supervise. Indian companies or entities didn’t own the modified IP they could have created or developed since their product comes under the work for hire standards, or ownership was clearly transferred to the hiring company. Despite whether Indian companies made software services that had a new value of knowledge, they did not authentically find a method to protect it. The main IPR in the software industry to protect Software is Copyright Registration. The Copyright law of India conforms to the requirements set out by the TRIPS Agreement, and thus Software is safeguarded as a literary work in India. In the one decade, India has performed many legislative measures to bring it into compliance with the requirements of TRIPS.

Future of IPR in Software Industry in India

From time to time, the business process for Indian Software will keep on challenging, and the benefits of labour are education, skill development, low cost, more people speak in English, etc. These wages are increasing day by day and more in countries like Ireland, China, etc., and they are trying hard to develop or expand their labour departments.

  • Changes in Company Strategies

The Indian software industry requires more & more improvement in terms of building a customer base, creativity, more domain knowledge, etc., it will reduce the growth rate among the rest. In some companies in India, they try to improve the enormous market of packaged software products. They have to develop a competitive spirit in marketing, improving technologies, skilled labour, etc. These requirements will make an excellent and newly improved Intellectual Property[1] in the upcoming future. This will be an improved model IP framework that will be creative and cost-effective and can be used in different ways.  

What are the Factors for the Development of India Software?

Factors for the Development of India Software
  1. Various Government Policies: The Government of India helped in the development & growth of the software industry of India. However, the contribution was not direct, but the Government policies set up new research & educational places, which is essential to developing a skill for labour.
  2. Indian Culture: The Culture of India is very old, and it supports the free exchange of ideas. However, it is not absolute in nature. China has been our main competitor, and there is a good association between the Indian Culture and the development or improvement of the software industry in India.
  3. Skilled Labor: In India, most industries depend on skilled labour compared to any financial or physical activities.  The cost of providing software services is evaluated by labour which is around 70%-80%, and they produce more incredible value. That’s why the demand for software engineers in India is increasing day by day.
  4. Clustering: The Indian software industry begin in Bangalore, now it has become the Silicon Valley of India, and most of the big high-tech companies are in Bangalore. After this, many more developed (in terms of software industries) states in other states of India, such as Chennai, Mumbai, Hyderabad. This software industry tried to follow the American model. Clusters encourage knowledge-sharing peacefully. This cannot be easily codified; it can only be learned via actual face to face conversations and also through visual notice.

When a cluster is established correctly and obtains a reputation, and people start identifying it as a geographic brand, then new firms or companies try to measure the credibility at their location. When many software industries settle themselves in a similar cluster, they become an employment source for others, and it will encourage software industries.


The role of IPR in the software industry and related industry is significant. The law shows different methods for protecting the rights of the companies’ ownership. The robust protection of IPR is in a country, the better encouragement the technology & innovation sector gets leading to better economic growth. But, it is also believed that IPR protection may lead to the dominance of Patent holders, and the scope for innovation is decreased.

Read our article:Everything You Need to Know About INDRP Policy

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A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.


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